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Apple Announces Its Plans for Indonesia

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Price movement

Apple (AAPL) has a market cap of $622.4 billion. It rose 0.13% to close at $115.97 per share on December 16, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 1.8%, 5.4%, and 12.6%, respectively, on the same day.

AAPL is trading 3.8% above its 20-day moving average, 3.0% above its 50-day moving average, and 10.8% above its 200-day moving average.

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Related ETF and peers

The Schwab US Broad Market ETF (SCHB) invests 2.5% of its holdings in Apple. The YTD price movement of SCHB was 12.8% on December 16.

The market caps of Apple’s competitors are as follows:

  • Alphabet (GOOG) — $538.5 billion
  • Microsoft (MSFT) — $476.9 billion
  • International Business Machines (IBM) — $159.1 billion

Latest news on Apple

On December 16, 2016, Reuters reported, “Apple Inc. has committed to invest around $44 million in a research and development center in Indonesia over the next three years, a senior government official said, enabling it to start selling its latest iPhone 7 in the Southeast Asian nation.”

The report added, “An Apple spokeswoman declined to confirm he investment figure, but pointed to an announcement last year that the US tech company had committed to build an iOS App Development Center in Indonesia.”

In another report, Reuters noted, “Europe’s top court will decide next week on Spanish tax breaks for foreign takeovers in a ruling that may give clues as to how judges will deal with more complex tax cases involving Starbucks and Apple.”

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Apple’s performance in fiscal 4Q16

Apple (AAPL) reported fiscal 4Q16[1. quarter ended September 24, 2016] net sales of $46.9 billion, a YoY (year-over-year) fall of 8.9% from its net sales of $51.5 billion in fiscal 4Q15. The company’s gross profit margin and operating margin narrowed 180 basis points and 310 basis points, respectively.

Its net income and EPS (earnings per share) fell to $9.0 billion and $1.67, respectively, in fiscal 4Q16, compared to $11.1 billion and $1.96, respectively, in fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, AAPL reported net sales of $215.6 billion, a YoY fall of 7.7%. Its net income and EPS fell to $45.7 billion and $8.31, respectively, in fiscal 2016, compared to $53.4 billion and $9.22, respectively, in fiscal 2015.

AAPL’s cash and cash equivalents and inventories fell 2.8% and 8.7%, respectively, between fiscal 2015 and fiscal 2016. Its current ratio and debt-to-equity ratio rose to 1.4x and 1.5x, respectively, in fiscal 2016, compared to 1.1x and 1.4x, respectively, in fiscal 2015.

Projections

Apple (AAPL) made the following projections for fiscal 1Q17:

  • revenues of $76 billion–$78 billion
  • gross margin of 38.0%–38.5%

In the next part, we’ll look at Clorox (CLX).

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